CANADA STOCKS-TSX rises to 16-month high, led by resource shares

(Adds analyst quotes and details on the Canadian dollar and
free trade talks, updates prices)

* TSX closes up 91.12 points, or 0.61 percent, at 14,939.04

* Index posts its highest close since June 2015

* Nine of the TSX's 10 main groups ended higher

By Fergal Smith

TORONTO, Oct 21 (Reuters) - Canada's main stock index rose
to a 16-month high on Friday as shares of energy and materials
companies led broad-based gains and investors raised bets on a
rate cut from the Bank of Canada.

For the week, the commodity-linked TSX rose 2.4 percent,
helped by a 15-month high on Wednesday for U.S. crude oil. It
was the biggest one-week gain for the index since March.

"People might be speculating that if the loonie goes on
another down-leg that could help the Canadian economy again,"
said Colin Cieszynski, senior market analyst at CMC Markets
Canada.

The Canadian dollar tumbled to a seven-month low against the
U.S. dollar after weaker-than-expected domestic retail sales and
inflation data fueled interest rate cut bets.
Continued...